Zimele Personal Pension Plan

Introduction

The Zimele Personal Pension Plan is an individual pension scheme registered with the Retirement Benefits Authority (RBA). It is authorized under the Income Tax Act, and as such, is entitled to certain benefits that make it a tax efficient way of saving for your retirement. The Zimele Personal Pension Plan is suitable for individuals who self-employed and persons whose employers do not have an in-house pension scheme.

Structure of the Zimele Personal Pension Plan

The Zimele Personal Pension Plan is registered and regulated by the Retirement Benefits Authority (RBA) and is authorized under the Income Tax Act. The RBA also prescribes the structure of personal pension plans (PPP).

A Personal Pension Plan is required to have a fund manager, a custodian and a trustee. The role of the fund manager is to invest funds of the pension plan in prescribed types of investments and ensure overall good performance.
The role of the custodian is to ensure safety of all assets of the pension plan. The role of the trustee is to ensure that the interests of members are upheld according to regulatory guidelines. The fund manager, custodian and trustee are licensed and regulated by the Retirement Benefits Authority. In the Zimele Personal Pension Plan, the trustee is National Bank of Kenya (NBK) Trustee Services, the fund manager is Zimele Asset Management and the custodian is Kenya Commercial Bank (KCB) Custody Services.

Objective

The objective of the Zimele Personal Pension Plan is to provide individuals with a safe and secure avenue where their contributions can be saved and invested for use in retirement.

 

How it works

The Zimele Personal Pension Plan works on the pooling of funds concept where your contribution and any from your employer, are invested collectively for your benefit in retirement. The Zimele Personal Pension Plan requires you to make payments into the scheme on a regular basis, usually once a month.

Although there is no limit on how much one can save in the scheme, the amount that qualifies for income tax benefits is currently at a maximum of kshs.20,000 per month or kshs.240,000 per year.

How to Save in the Zimele Personal Pension Plan
  • Make regular contributions or lump sum payments to the scheme. Remember there is no upper limit as to how much you may contribute to the scheme.
  • Money is invested, for example in interest earning assets and shares, on your behalf through the scheme and the amount of money you get when you retire will depend upon how much you contribute and how it has been invested.
  • When you decide to retire you can use either all of the money, or part of it, to buy an annuity, that is a pension income for life. You can also withdraw a portion as a lump sum, free of income tax up to a certain limit.
  • The only charge is a management fee of 2.5 % per year.
Tax Advantages

Members of the Zimele Personal Pension Plan enjoy various tax benefits. First, their contributions to the pension scheme are deducted from their gross salary and the difference subjected to income tax. Second, all investment income earned by the pension scheme is not subject to income tax. Third, members are entitled to tax free withdrawals, up to a certain limit, upon reaching the age of retirement.

How to Get Started

To become a member you require:

  • Duly completed application form
  • 2 passport-sized photographs
  • Copy of national identity card or passport
  • Personal identification number (PIN)

Application forms are also available on our website.

Click here to view our pension brochure.